Despite FCC ruling that cable modem service was interstate information service not subject to open access requirements, issue will remain concern for local franchising authorities (LFAs) in their review of AT&T-Comcast merger transfer applications, according to lawyers for cities. Although it’s unlikely that there would be outright demands for open access requirements as condition for transfer as seen in AT&T-MediaOne transfer process, there will be interest in open access whether or not LFAs have authority, they said. “Open access is still a concern for a lot of local authorities,” attorney Nicholas Miller said. “Whether they have authority is a separate issue.” High on list of other issues likely to figure in AT&T-Comcast transfer are customer service and anticompetitive pricing, lawyers said.
Deputy Defense Secy. Paul Wolfowitz told Commerce Dept. (DoC) in letter on ultra-wideband that he was confident FCC now understood Commerce had authority over whether new technology radiating into govt. bands met statutory public interest obligations. In letter to Secy. Donald Evans, Wolfowitz stressed role of Executive Branch agencies in managing spectrum in way that protected federal systems. FCC approved UWB order Feb. 14 after long coordination process with NTIA amid concerns by agencies such as DoD and Transportation Dept. on how GPS and other safety-of-life systems would be protected from interference.
Northpoint-DBS spectrum debate is likely to be settled April 18 at regular FCC agenda meeting. Industry source told us he was “semi-sure” Northpoint item would be on Sunshine agenda issued late Thurs. (today). He said issue had been “bounced around 16 ways to Sunday and been revised” several times in last couple of weeks. Putting it on agenda “brings a halt to the process,” source said: “It requires the Commissioners to stop screwing with it. The chairman’s office is basically saying enough is enough.” Source said issue would be settled at same time as NGSO-GSO (non- geostationary satellite operators-geostationary satellite operators) spectrum-sharing decision, adding that “they didn’t want to resolve that issue before Northpoint” for political reasons. Best bet is that Northpoint will be placed in some kind of auction, source predicted. “I haven’t heard anything that would lead me to believe it won’t be an auction.”
FCC granted request by Verizon Cal. and Verizon W. Coast to withdraw their application to discontinue providing domestic services in certain exchanges in Cal. Verizon said it filed application because it wanted to sell local exchange properties to Citizens Communications. It also said it failed to consummate sale with Citizens and as result never exercised authority to discontinue service.
Transamerica Chmn. Frank Herringer and Applera Chmn.-CEO Tony White elected to AT&T board… Nancy Mason, ex-Qwest, joins Berman Enterprises lobbying organization as senior vp… Anita Walgreen, ex-iBlast, FCC and NTIA dir., becomes of counsel to law firm Howrey & Simon… James Hanning, Sinclair Bcstg. Group dir.-sales, promoted to gen. mgr., WXLV-TV (ABC, Ch. 45) Winston-Salem, N.C., and WUPN-TV (Ch. 48, UPN) Greensboro-High Point.
FCC on Wed. approved NBC’s acquisition of Telemundo, giving network and its parent GE control of 2 TV stations each in N.Y., Chicago, Dallas and Miami, and creating nation’s first triopoly with common ownership of 3 stations in L.A. NBC requested and was granted year to come into compliance with Commission’s ownership rules, which allow duopoly but not triopoly. NBC said it would divest KVEA (Ch. 52) in L.A. to meet FCC rules and in meantime would operate that station independently of others. Acquisition gives NBC additional 11 full-power TV stations and 17 low-power and TV translator stations.
National Telecom Co-op Assn. (NTCA) members will be “fanning out across the Hill” today (Thurs.) seeking support for rural wireless bill introduced this week by Sen. Baucus (R-Mont.), NTCA CEO Michael Brunner said. Bill, which would require FCC to offer spectrum in blocks covering smaller geographic areas than currently covered, “isn’t perfect legislation, [but] it’s a piece of the puzzle,” Baucus’ Legislative Asst. Jay Driscoll said Wed. at NTCA policy conference press luncheon in Washington. He said Baucus was reaching out to other associations such as CTIA to get backing from members “both big and small,” emphasizing to CTIA-affiliated companies that bill wouldn’t pick winners or losers or show preference for particular technology platforms: “If the bill can be written better, we invite them to work with us.” NTCA Pres. John Metts said bill not only addressed difficulties of deploying wireless telephony service in rural areas, but also would assist in provision of broadband and data services. Since legislation would require FCC to auction smaller spectrum blocks, small-to-midsized providers could afford to buy spectrum that otherwise could be purchased only by industry behemoths, he said. Subsequent decrease in infrastructure and service start-up costs for competitive wireless carriers would encourage such companies to participate in auctions, he said. Recent NTCA member survey indicated many providers were dissuaded from participating in auctions since FCC offers spectrum blocks exceeding needs of rural carriers. Metts cited example of company wanting to buy spectrum covering rural area outside of El Paso that would have been required to bid for block that included entire El Paso metropolitan area: “Rational, smaller license areas that relate to our smaller geographic areas is what we need.”
There’s “real opportunity” in current round of retransmission consent negotiations between cable and broadcasters for broadcasters to make progress on getting DTV signals carried, attorney Robert Rini said at NAB convention in Las Vegas. He said analog signals are still important to cable, and broadcasters can link carriage rights to long-term carriage of DTV. Broadcasters have to be careful, however, to make sure entire DTV signal is carried, not just main video signal, Rini said. He also suggested broadcasters seek most-favored-nation status guaranteeing that if any other local broadcasters get better carriage deal, station gets equal treatment. Broadcasters “have to be realistic” about what to expect from carriage negotiations, said attorney Scott Johnson. He said there was “great hope” about earlier rounds of negotiations, but “in most cases it didn’t pan out.” “Good news” is that all but one FCC commissioner who voted on earlier decision not to grant DTV dual must-carry has left Commission, said attorney Julian Shephard, but he said he still wasn’t optimistic on DTV must-carry: “It may well be that for the duration of the DTV transition there will only be DTV retransmission consent.” -- MF
FCC Media Bureau’s decision last week to reject EchoStar 2-dish plan for meeting local-into-local broadcast carriage requirements fails adequately to protect consumers from discriminatory conduct by company, Comrs. Martin and Copps said in statement Wed. Martin said decision gave EchoStar “easy loophole” to continue its 2-dish policy and made it “needlessly burdensome” for consumers to get all of their available local broadcast channels. By merely providing consumers with notice that they will not receive local channels without 2nd dish, EchoStar can easily continue its two-dish policy and make some local broadcast channels inaccessible to consumers as practical matter, they said: “The Bureau’s decision is inconsistent with the [Satellite Home Viewer Improvement Act], the Commission’s implementing rule and even the Bureau order’s own findings that such steps impose a discriminatory cost on certain local broadcast channels,” Martin and Copps said. They also questioned whether Bureau had authority to make such decision. “We believe that the Bureau -- on its own -- cannot propose an escape hatch that would essentially permit conduct that violates our congressional directive, violates FCC rules and is inconsistent with the language adopted in a Commission decision.”
LAS VEGAS -- In his complaints about inappropriate over- air programming, Comr. Copps told NAB session here that broadcasters repeatedly told him he was “right on target” in calling for new and strict voluntary controls. “The FCC is not a content regulatory agency,” he said, and “this is the golden moment” for broadcasters to act voluntarily to put lid on undesirable programming “on an industrywide basis.”